Before the Event Legal Expenses Insurance (BTE LEI) provides consumers with the cost of legal fees should they become involved in litigation. It is a relatively inexpensive mechanism for resolving a range of problems and legal disputes, particularly compared to the prohibitive cost of litigation. According to Office for National Statistics’ estimates, there were 25 million households in the UK with this type of insurance in 2008.
Nevertheless, there have been calls for the increased promotion of these products, for example Lord Justice Jackson’s review of the cost of civil litigation and then Lord Young’s review into health and safety regulation and the compensation culture. The Government’s proposal to cut civil legal aid over the next four years has led to some suggestions that LEI should fill the gap.
We agree that BTE LEI has the potential to offer consumers access to justice. Over half of those who had a successful claim (53 per cent) thought that BTE LEI was the only way they could have sorted out their problem. Nevertheless, an endorsement or promotion of this market is impossible without a sound understanding of how it operates for consumers.
This report considers how well the BTE LEI market works for consumers, drawing on in-depth consumer research and analysis of products.
Related documents:
- Accent research report on legal expenses insurance (PDF 1.15MB)
- Overlap and duplication comparison table (PDF 140KB)
Lawrlwythiad: In case of emergency (Welsh) (PDF 938KB)
